Sodexo Fiscal 2025 results in line with revised guidance; Fiscal 2026 as a transition year laying foundation for the future

Oct. 23, 2025
PR Fiscal 2025 Results

Fiscal 2025 results:
- Organic revenue growth of +3.3%, or +3.7% underlying¹
- Underlying operating profit margin at 4.7%, up +10bps at constant currencies
- Underlying group net profit at 785 million euros, up +3.7% at constant currencies
- Solid free cashflow; net debt/EBITDA ratio of 1.8x
- Proposed dividend of 2.70 euros, in line with the Group dividend policy
Evolution within the governance
- Appointment of Thierry Delaporte as Chief Executive Officer, effective November 10, 2025
- Board evolutions to be proposed at the Shareholders Meeting on December 16, 2025
Fiscal 2026 guidance:
- Organic revenue growth between +1.5% and +2.5%
- Underlying operating profit margin to be slightly lower than Fiscal 2025

At the Board of Directors meeting held on October 22, 2025, chaired by Sophie Bellon, the Board approved the consolidated accounts of Sodexo for the fiscal year ended August 31, 2025.

Fiscal 2025 key figures and highlights

Over the past four years, we have repositioned Sodexo as a pure-play food and services company. We have streamlined our portfolio, sharpened our focus on core activities, whilst continuing the transformation of our operating model. These efforts have set a strong foundation for sustainable performance.

Our Fiscal 2025 results reflect both the progress achieved and the operational challenges we faced, particularly in the U.S. For Fiscal 2026, we remain laser-focused on addressing these challenges, with clear action plans already underway.

The appointment of Thierry Delaporte as Chief Executive Officer marks the opening of a new chapter for Sodexo, with commercial acceleration and rigorous execution being our key priorities. I am confident that our new governance structure will support the Group’s next stage of development and long-term success.

I want to sincerely thank all Sodexo teams for their dedication and commitment. Their engagement has been essential in driving change and positioning the Group strongly for the future.

Sophie BellonSodexo Chairwoman and CEO

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Financial highlights

Revenues - Fiscal 2025 consolidated revenues reached 24.1 billion euros, up +1.2% year-on-year, driven by organic growth of +3.3%, partly offset by a negative currency impact of -1.8% and a net contribution from acquisitions and disposals of -0.3%.
Organic revenue growth of +3.3% (or +3.7% excluding the base effect of the Olympics, the Rugby World Cup and the leap year in Fiscal 2024), primarily reflects a contribution from pricing close to 3% and slight positive volume and net new business contribution.
By geography:
- In North America, organic growth was +2.8%, reflecting strong results in Sodexo Live! and Business & Administration, and solid underlying momentum in Healthcare despite timing effects, offset by contract losses in Education.
- In Europe, organic growth was +1.7%, or +2.7% excluding the base effect of the Rugby World Cup and the Olympics, with progress across segments, notably in Healthcare and Seniors.
- In Rest of the World, organic growth was +7.5% primarily driven by India, Australia and Brazil, as Sodexo continues to strengthen its positioning and gain market share. Growth in most other countries remained robust.
Underlying operating profit was 1.1 billion euros, corresponding to an Underlying operating margin of 4.7%, up +5% and +10 basis points at constant currencies. The improvement was supported by procurement efficiencies and benefits from the Global Business Services project, which offset ongoing investments to support growth. Europe and the Rest of the World contributed to margin expansion at constant currencies, while North America remained stable.
Other operating income & expenses amounted to -154 million euros, mainly from restructuring expenses and amortization of purchased intangible assets. The prior year number included a one-off gain from the disposal of the Homecare business.
Operating profit was 985 million euros, compared to 1,051 million euros in the prior year, reflecting year-on-year differences in other operating income and expenses.
Net financial expense amounted to 88 million euros, compared to 63 million in the prior year, mainly due to lower one-off gains than in the previous year (including compensatory interests and dividends). During the year, the Group continued to optimize its financing structure through the cash repayment of its 700 million euros bond maturing in April 2025, the 1.1 billion U.S dollars notes issuance by Sodexo Inc. in May 2025, and the partial repurchase of existing debt, thereby supporting liquidity and financial flexibility.
The Effective tax rate was 22.2%, reflecting mainly the update of the risk related to Sodexo S.A. tax audit, following the finalization of related procedures during the period, and the recognition of previously unrecognized tax losses in France.
Group Net profit was 695 million euros, down from 738 million euros last year, the difference mainly reflecting an exceptional capital gain in the prior year. Underlying net profit amounted to 785 million euros, up +3.7% at constant currencies. The resulting underlying EPS was 5.37 euros.
The Board proposes a dividend of 2.70 euros, up +1.9% from the previous year, and in line with the Group dividend policy of a 50% pay-out ratio based on underlying net income. It will be proposed at the Shareholders Meeting on December 16, 2025.
Free cash flow amounted to 459 million euros, including an exceptional tax outflow related to the finalization of the tax audit of Sodexo S.A. Working capital was well contained and capex stood at 2% of revenue.
Net M&A expenditure totaled 93 million euros, driven by the acquisitions of CRH Catering in the United States and Agap’Pro, a GPO in France, which were partly offset by some disposals in non-core activities. The Group also agreed to acquire Grupo Mediterránea in Spain, with closing expected by the end of calendar year 2025, reinforcing its presence in key food markets.
Net debt increased to 2.7 billion euros, from 2.6 billion euros at the end of Fiscal 2024, mainly due to the exceptional tax outflow. As a result, the Net debt to EBITDA ratio was 1.8x, compared to 1.7x at the end of Fiscal 2024, within the target range of 1-2x.

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Commercial momentum

Client retention² was 94%, reflecting the loss of a large global FM account (–50 bps impact) and weaker performance in the U.S. Education segment.
New signings² totaled 1.7 billion euros, with a strong start to the year followed by a softer second half, partly mitigated by successful cross-selling.

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Leading the way in sustainability

In Fiscal 2025, Sodexo continued to strengthen its positive impact:

80% employee engagement and lowest-ever Lost Time Injury Rate of 0.45, reflecting continued progress in workplace safety,
significant carbon reductions, achieving total greenhouse gas emissions reductions of -19.3% compared to 2017 (including -37.7% for Scopes 1 and 2)
-47.6% decrease in food waste, in close collaboration with clients, suppliers, and partners.

The Group is also publishing its first CSRD-compliant sustainability statement, reinforcing governance and transparency.
Building on this progress, Better Tomorrow 2028 sets a new roadmap to strengthen the Company’s social, environmental and societal impact, thereby contributing to its long-term resilience.

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Governance

Dissociated governance structure, as of November 10, 2025

Thierry Delaporte as Group Chief Executive Officer;
Sophie Bellon as non-executive Chairwoman of the Board of Directors for the duration of her mandate.

Changes in the Board of Directors

Gilles Pélisson will succeed Luc Messier as Lead independent Director, effective November 10, 2025.
Véronique Laury and Cécile Tandeau de Marsac, who have contributed strongly to the Board and its Committees over their respective 6- and 9-year tenures, have chosen not to seek renewal of their terms.

The Board will propose several resolutions relative to its composition to strengthen the diversity of its expertise and its knowledge of the North American markets. The following appointments and renewals will be proposed at the Shareholders Meeting on December 16, 2025:

the appointment of Geneviève Bich as an independent Director for a three-year term. If approved, she will chair the Compensation Committee and sit on the Nominating Committee.
the appointment of Françoise Colpron as an independent Director for a three-year term. If approved, she will serve on the Audit Committee.
the renewal of Luc Messier’s term as independent Director for a three-year term. If approved, he will chair the Sustainability Committee and remain a member of the Nominating and Audit Committees.
the appointment of Bellon SA, represented by Patrice de Talhouët for a three-year term to replace his individual mandate as non-independent Director. If approved, he will be a member of the Sustainability and the Audit Committees.

All the resolutions and detailed information on the Board’s composition and governance will be presented in Sodexo’s Universal Registration Document, to be soon filed with the AMF (French financial markets authority).

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Outlook

For Fiscal 2026, in line with current operational priorities, Sodexo provides the following outlook:

Organic growth to be between +1.5% and +2.5%, reflecting a minimum +2% contribution from pricing, neutral to moderate contribution from both like-for-like volume and net new business, and a one-off reclassification triggered by the renewal of a large contract;
Underlying operating profit margin to be slightly lower than Fiscal 2025, reflecting the mix and phasing of our growth drivers and targeted investments to enhance our Group’s foundations for profitable growth.

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Conference call

Sodexo will hold a conference call (in English) today at 9:00 a.m. (Paris time), 8:00 a.m. (London time) to comment on these Fiscal 2025 Results.

To join the call:

from the UK / International, please dial: +44 (0) 121 281 8004
from France, please dial: +33 (0) 1 70 91 87 04
from the USA, please dial: +1 718 705 8796

Access Code: 07 26 13

A live audio webcast is also available on www.sodexo.com.

The press release, presentation and webcast will be available on the Group website www.sodexo.com in both the “Newsroom” section and the “Investors – Financial Results” section.

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Financial calendar

Fiscal 2025 Annual Shareholders Meeting: December 16, 2025
Fiscal 2026 First quarter Revenues: January 8, 2026
Fiscal 2026 First half Results: April 10, 2026
Fiscal 2026 Third quarter Revenues: July 2, 2026
Fiscal 2026 Full year Results: October 23, 2026
Fiscal 2026 Annual Shareholders Meeting: December 16, 2026

These dates are indicative and may be subject to change without notice. Regular updates are available in the calendar on our website www.sodexo.com

¹Excluding the base effect of the Olympics, Rugby World Cup and leap year in Fiscal 2024.
²Retention and new signings are based on annualized revenue of contracts gained or lost during the period, irrespective of contract dates.

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